From the case, there’re several significant issues emerged in HP desk jet printer supply chains: -Inefficient demand forecasting system
-Long lead time
-Disagreement on right level of inventory among HP divisions Demand Forecasting System
HP desk jet printer is considered in the mature stage of product life-cycle. So, time-series analysis along with causal methods would be efficient tools for forecasting demand. As time-series methods use a variety of past data to estimate future data and causal methods generate forecasts by using some other pieces of data such as functional of inflation, GNP, the unemployment rate, etc. Using these two methods together would provide more accurate forecasting of desk jet printer demand. In addition, demand forecasting should be centralized and shared among the supply chain. By sharing demand information, it can reduce uncertainty throughout the supply chain and can decrease cost for production and inventory holding cost. Lead Time
Better demand forecasting can also reduce lead time. Furthermore, HP may reduce lead time by using parallel processing together with process standardization or postponement. These methods are also relevant to a push-pull strategy. The two methods need aggregate demand forecast of finished products as HP need to know the demand for a component for all finished products that use this component. Then, HP only assembles the generic products at Vancouver Division and ships them to European DC. Having a localized process at European DC can save cost as some materials can be acquired from locally sources. It also reduces lead time and easier to mange uncertainty of demand in local market. It is easier for Vancouver Division to manage localized products. Decreasing lead time will result in declining in safety stock which can save inventory holding cost. In addition, HP may use concurrent and parallel processing in manufacturing process.
By redesigning the...